Research On Internal Control Information Disclosure Quality Of Chinese Listed Banks

In order to avoid the recurrence of financial scandals of Enron and World Com. in capitalmarket, Sarbanes-Oxley Act was issued by USA in2002, which makes a mandatory request forlisted companies. Together with other four ministries, the Treasury Ministry issued Basic Norms forCorporate Internal Control in2008. It asks listed corporate to assess its internal control and discloseit after external auditing, and makes the disclosure of internal control in our country stride fromvoluntary disclosure to compulsory disclosure. The issued specifications have very importantpractical significance for both management and investors. Especially for banks which have highrisks, the research on disclosure of internal control information is of great significance.The paper focuses on the construction of quality appraisal system for internal controlinformation disclosure of listed banks, which is used to analyze the current status. The paperexplains the importance and necessity of information disclosure from four related theories, andrelates the relevant legislation，the framework of bank internal control and the particularity of thebanking sector. Then based on previous studies, insisting the constructing principles, starting fromthree major quality characteristics of internal control information disclosure and combining with theparticularity of the banking sector, the paper selects targeted second-level and third-level index,adopts entropy weight method to their weights, and constructs a quality appraisal system whichsuits the banking sector and have a hierarchy structure. However, this system is not perfect, and thechoice of index is not positive, so it requires more careful study.With the samples of sixteen listed banks in our country, the paper adopts the constructedappraisal system to evaluate the quality of disclosed internal control information. It finds that theinformation disclosure generally has a low quality, focuses on formal disclosure, and is distributedin various places. Also management has very weak consciousness for disclosure. Then the paperanalyzes the reasons from the aspects of legislation, the banks and information demanders, and atlast put forward the corresponding improving measures.